In its Budget, the SAD-BJP Government on Wednesday neither gave concessions nor imposed any new taxes, but, promised to hone the skills for future development.
The Budget, in sync with the national-level trend, looked more at the future than immediate issues afflicting the State including power shortage, tax burdens, low levels of education and health, among others.
Waging a war against drug menace soon after the issue was blown out of proportion ahead of the lok Sabha polls, the State Government allotted not much funds to the cause while giving Rs 100 crore for setting up rehabilitation centres for drug addicts in each district — an announcement already made by Chief Minister Parkash Singh Badal.
Finance Minister Parminder Singh Dhindsa on Wednesday presented Rs 73,593 crore State Annual Budget for 2014-15 with a revenue deficit of Rs 4,252 crore — 1.16 per cent of GSDP. The State’s revenue deficit during previous year was estimated to be Rs 1,746 crore, that eventually shoots up to Rs 5,259 crore.
On one hand where the State Government’s first Budget with the NDA Government at the Centre received accolades with its prime focus on skill development, urban development, welfare of SC/BC, the figures, at the same time, lay bare the slumping fiscal positions with a fiscal deficit pegged at Rs 10,372.82 crore — 2.84 per cent of GSDP.
Dhindsa, presenting the Budget proposals, said that the total size of the Budget was Rs 73,593 crore which also includes Rs 15,000 crore towards ways and means of transactions for current fiscal, and its effective size was Rs 58,593 crore.
He said that the year begins with a positive opening balance of Rs 267 crore, while the closing balance at the end of 2014-15 would be Rs 227 crore. The State was expecting total receipts of Rs 56,752 crore.
Dhindsa projected total revenue receipts, including own tax revenue of Rs 44,893.68 crore as against revenue expenditure of Rs 49,146.31 crore for 2014-15. He ascribed the non-achievement of targeted revenue deficit during last fiscal to ‘low’ tax revenue growth. Notably, the State Government has failed in achieving revenue deficit target of Rs 1,746.56 crore for 2013-14 as the deficit has shot up to Rs 5,259.06 crore for 2013-14 as per revised Budget estimates.
With total debt servicing being projected at Rs 11,496.25 crore including interest payment and loan repayment, the State’s outstanding debt (excluding reserve funds) has been projected at Rs 1,05,483.37 crore, 28.88 per cent of GSDP for 2014-15. The size of annual plan has been projected at Rs 20,100 crore, up 25 per cent from Rs 16,123 crore in 2013-14.
Out of the annual Plan, 16.08 per cent of funds have been earmarked for power sector, followed by 13.38 per cent for transport, while 9.79 per cent and 6.40 per cent of funds have been kept for rural development and agriculture and allied activities, as per budget. With a main focus on skill development, Dhindsa earmarked Rs 500 crore for providing skills to youth by utilising training capacity of various Governments and private institutions as well as engaging reputed private training providers.
“It is envisaged to revamp and empower the State Skill Development Mission under the chairmanship of Chief Minister with three-tiers at State, district and block level,” he said. Under fire over deadly drug menace spreading its roots across the State, the State Government has proposed to set up rehabilitation centres for drug addicts in each district at a cost of Rs 100 crore hoping that the scourge of drugs will be wiped out this from out State “in coming two years”.
“The State Government is committed to eradicate drug menace in effective manner...The State is in the process of operationalisation of five ‘state of the art’ 50-bedded drug de-addition centres at Bathinda, Jalandhar and Amritsar at a cost of Rs 25 crore. The Government now proposes to set up rehabilitation centres in each districts at a cost of Rs 100 crore,” he said.
Giving top priority to the welfare of SCs, BCs and minorities, the outlay has been increased from Rs 596 crore in the annual plan 2013-14 to Rs 819 crore in 2014-15.
“Rs 278 crore for Multi-Sectoral Development programmes for minorities including scholarships to minority students and infrastructure development of minority concentration blocks, Rs 255 crore and Rs 75.40 crore for the development of SCs, BCs, respectively, including scholarships, Rs 90 crore for Shagun, Rs 50 crore for Pradhan Mantri Adarsh Gram Yojana for infrastructural development in SC villages, Rs 10 crore for vocational training in ITI’s for SC students, Rs 10 crore for houses to houseless SCs in rural and urban areas, among others,” said Dhindsa.
He said that the State Government will also provide Rs 10 crore as share capital to Punjab State Scheduled Castes land Development and Finance Corporation and BACKFINCO each in the year 2014-15.
Dhindsa maintained that a provision of Rs 5,300 crore had been made to continue the power subsidy, including free power to 10 lakh farmers’ families in the State and up to 200 units of free power to five lakh BPl and 18 lakh Scheduled Caste (SC) families in the state. The figure stood at Rs 4,815 crore during previous fiscal.
To ensure farm growth, Dhindsa proposed programmes including Rs 500 crore for strengthening farm and allied sector under RKVY. He also announced to dole out Rs 82 crore under National Horticulture Mission, Rs 72 crore under National Food Security Mission, Rs 33 crore under National Mission of Agriculture Extension and Technology, Rs 27 crore under National Mission on Sustainable Agriculture and Rs 5 crore under National Oilseeds and Oil Palm mission.
For its ambitious and “election-wining” Atta-Dal scheme — under which subsidised food grains were provided to weaker sections, the State Budget made provision of Rs 400 crore. “Rs 400 crore has been allocated for New Atta Dal Scheme and it is estimated that 8,70,000 tonnes of wheat and 75,000 tonnes of pulses shall be distributed during current year,” said Dhindsa.
“With a view to focus on efforts of Government departments on the outcome from funds spent on various schemes, it has been decided to implement performance budgeting for state annual plan from current year. NABCON, the consulting arm of NABARD, is being engaged to prepare blue print of the scheme,” Dhindsa added.
For power sector, an outlay of Rs 3,200 crore has been earmarked, including Rs 1,150 crore for transmission, Rs 750 crore for generation, Rs 1,250 crore for distribution and Rs 500 crore for Re-structured Accelerated Power Development Reforms Programme. A sum of Rs 3,024 crore is proposed to be spent on road infrastructure, including an investment of Rs 1,291 crore through Punjab Infrastructure Development Board. Besides, Rs 8,552 crore shall be invested by the Punjab Government on improving the Irrigation Infrastructure in Punjab in next three years.
Dhindsa added that Rs 3,000 crore shall be spent in next three years on modernization of canal system benefiting 9.21 lakh acre area in the State, Rs 2,762 crore for lining of water course for providing uninterrupted, efficient and fair distribution of canal water to farmers. “Rs 960 crore shall be spent in next three years to tackle the problem of water logging in Muktsar Sahib, Fazilka, Faridkot and Ferozepur districts to reclaim two lakh acre area,” announced Dhindsa.
The Minister, presenting his third budget, said that Chandigarh International Civil Air Terminal at Mohali will be commissioned by December 2014 while for civil airport at Sahnewal near ludhiana, 7.5 acre of land handed over to Airports Authority of India for works which will help to land flights even during low visibility conditions.
Additional land of 322 acres is being acquired for the extension and upgradation of this airfield to handle bigger jet aircrafts, he said. The plan allocation for school education has been increased from Rs 1,275 crore in 2013-14 to Rs 1,859 crore in 2014-15, which includes Rs 85 crore to be provided by PIDB. The State Government has earmarked a sum of Rs 548 crore for rural development, Rs 1,218 crore urban development, Rs 1,285 crore for irrigation.